Taiwan rejects US proposal on semiconductor production split
Discussions between Washington and Taipei highlight both the strategic weight of semiconductors and the delicate balance of broader US-Taiwan trade relations.
Taiwan has dismissed reports of a US plan to divide global semiconductor production evenly between the two sides. Vice Premier Cheng Li-chiun, returning from tariff talks in Washington, said her negotiating team had never discussed or agreed to a 50-50 split on chipmaking.
‘Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions,’ Cheng told reporters.
The clarification followed comments by US Commerce Secretary Howard Lutnick, who suggested Washington was seeking such an arrangement. Neither the US Department of Commerce nor the Office of the Trade Representative commented on the reports.
Taiwan, home to leading chipmaker TSMC, currently faces a 20% tariff on exports to the United States but hopes negotiations will lead to more favourable trade terms.
TSMC is already expanding production abroad with a $165 billion investment in factories in Arizona, though the majority of its output will remain in Taiwan. The government has emphasised that the ongoing trade talks with Washington have achieved ‘certain progress’ but remain focused on tariffs, not production quotas.
Separately, President Lai Ching-te met with US officials to discuss agricultural trade. Taiwan pledged to purchase $10 billion worth of American agricultural products, including soybeans, wheat, corn, and beef, over the next four years, signalling broader economic cooperation despite tensions over chips.
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